INHERITANCE TAX IN ANDALUSIA

We will clarify that the inheritance tax is a state tax assigned to the Autonomous Communities. Hence, each community establishes what the heirs will pay when they receive an heirloom. The Autonomous Community considers two extremes: the wealth of the bequest and the kinship with the heir.

It is important to know in which community we must submit this inheritance tax.

The inheritance tax must be settled in the Autonomous Community where the deceased had his last habitual residence. I.e. a man lives in Nerja dies and leaves all his property to his only heir, his son, who lives in Asturias. The son will have to settle the tax in Andalusia.
At this point, the heir who must pay the heirloom tax will want to know how much he should pay.

The importance of having a testament document for inheritance

Family members of groups I and II do not pay when assets do not exceed the value of 1 million euros.

Exemptions:

Pérez Parras Economists & Lawyers Firm are pleased to inform you that as from January 1st 2018, the following are exempted from paying inheritance tax: family members of groups I and II, i.e. spouses, children and parents when the goods received do not exceed in value one million euros. In addition, the pre-existing assets of the heir should not exceed at any time one million euros to be able to benefit from the aforementioned tax exemption.

We want to emphasise that the million euros is calculated for each heir, not by the complete inheritance. For example: if father leaves a gift of two and a half million euros in equal parts to his three children, they would be exempt from paying this Tax.

Exceptions to Inheritance Tax when assets are not above one million euros.

Groups I and II family members won´t pay when assets received don´t exceed 1 million euros.

Before this reform came in to effect, the tax regulations were more restrictive.  The minimum for inheritance tax exemption was € 250,000 per heir. We appreciate that it is a small step forward! But it does not make everyone happy. Brothers, cousins, nephews, and most of distant relatives will still have to pay the usual heirloom tax.

Likewise, it is important to indicate that this reform does not have a retroactive effect. It will only affect the inheritances when the deceased dies in 2018.

We can help:

In the Pérez Parras Economists & Lawyers Firm we have a department specialising in estate inheritances, both national and foreign. If you want to prepare your will, settle bequests or have any questions related to this matter, do not hesitate to consult us and we will be very happy to study your personal case and assist you.